Elon Musk said over the weekend that Twitter's advertising revenue has fallen by 50% since he bought the company, and that it's not cash flow positive.
“That’s according to a Monday report from The Wall Street Journal. Given Musk purchased Twitter for $44 billion late last year, the markdown would put the company’s current valuation at about $23 billion, based on Ark’s estimate.”
$23b is what it was actually valued before Musk crazily overpaid for it and took over.
Now, that estimate comes from an investor that financed part of that purchase (so they’re already suspect for paying double the odds back then) that still thinks there’s a great future ahead for Twitter under Musk - so it’s wildly optimistic.
The real value you could find someone paying for it would be more likely in the mid single digits.
It’s worth about $6b, this is not a good time for a social media company built around ad revenue that’s hemorrhaging customers and also happens to be saddled to the brim with short-term debt.
Let’s also remember that in all of Twitter’s years of operation they only had a couple quarters where they actually turned a profit. Even after Trump made it ‘the place to see whatever the President was talking about’, they still struggled to make money.
Elon thinks he can fix that, but the real fools are the investors who believed him.
He doesn’t, he was smoking like crazy for a while, it’s a whole story, basically he smoked himself stupid during covid and only quit a few months ago.
He said a bunch of stupid shit when he was high because he thought he was beyond any and all question, and this is one thing he got caught on because it had a material effect on a publicly traded company.
I’d feel bad for him if he wasn’t such a complete moron who let the paranoia get the better of him.
Is there ever a good time for that type of company? Hemorrhaging customers and being saddled to the brim with debt seem like pretty big problems at any time
“That’s according to a Monday report from The Wall Street Journal. Given Musk purchased Twitter for $44 billion late last year, the markdown would put the company’s current valuation at about $23 billion, based on Ark’s estimate.”
$23b is what it was actually valued before Musk crazily overpaid for it and took over.
Now, that estimate comes from an investor that financed part of that purchase (so they’re already suspect for paying double the odds back then) that still thinks there’s a great future ahead for Twitter under Musk - so it’s wildly optimistic.
The real value you could find someone paying for it would be more likely in the mid single digits.
It’s worth about $6b, this is not a good time for a social media company built around ad revenue that’s hemorrhaging customers and also happens to be saddled to the brim with short-term debt.
This whole comment should be bankrupt.
Let’s also remember that in all of Twitter’s years of operation they only had a couple quarters where they actually turned a profit. Even after Trump made it ‘the place to see whatever the President was talking about’, they still struggled to make money.
Elon thinks he can fix that, but the real fools are the investors who believed him.
He doesn’t, he was smoking like crazy for a while, it’s a whole story, basically he smoked himself stupid during covid and only quit a few months ago.
He said a bunch of stupid shit when he was high because he thought he was beyond any and all question, and this is one thing he got caught on because it had a material effect on a publicly traded company.
I’d feel bad for him if he wasn’t such a complete moron who let the paranoia get the better of him.
And if memory serves, some of their most profitable quarters were during the lockdowns, which don’t exactly happen regularly.
Is there ever a good time for that type of company? Hemorrhaging customers and being saddled to the brim with debt seem like pretty big problems at any time
When money is free debt is almost meaningless, now is when shit gets real.
It’s also haemorrhaging ad revenue, since Musk recently stated that ad volumes were down 50% or so.
Twitter ad buys were junk when it was considered a good site. I can’t imagine how poorly it’s doing since the users are largely bluetlicker shitstains